Which of the following factors can contribute to a further reduction in the money supply in addition to a massive withdrawal of cash from banks?
A. Bank purchases of Treasury bonds from the Fed
B. Bank sales of government bonds to meet liquidity demands
C. Banks expand the approval and granting of loans
D. A decrease in the required reserve ratio
A. Bank purchases of Treasury bonds from the Fed
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If total explicit costs are equal to total implicit costs, then economic profit is zero
Indicate whether the statement is true or false
It is commonly argued that national defense is a public good. Nevertheless, the weapons used by the U.S. military are produced by private firms. We can conclude that
a. resources would be used more efficiently if the government produced the weapons. b. resources would be used more efficiently if private firms provided national defense. c. weapons are rival in consumption and excludable, but national defense is not rival in consumption and not excludable. d. national defense is rival in consumption and excludable, but weapons are not rival in consumption and not excludable.